AWS CloudWatch Scheduled Event and Lambda Function for EC2 Instance Health Check | Exam Question Answer

AWS CloudWatch Scheduled Event and Lambda Function

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Question

An internationally diverse group of students attending the London School of Economics has formed a Level 1 CFA Study Group. Three of the students (from

Germany, Japan, and the U.S) are assigned the Portfolio Management Study Session reading on selecting global investments. As part of determining how changes in currency rates can affect returns on foreign investments, the group analyzes the return in the U.S. bond market from the late 1980s to the mid 1990s and ranks the U.S. bond market returns in the following three ways: 1- measured in each individual's home currency, 2- adjusted for exchange rate changes and expressed in U.S. dollar terms, and 3 "" on a risk adjusted basis. They summarized their results in the following table:

* Rank is out of the set: Germany, Japan, & U.S.

Following is a set of possible conclusions drawn from their results. Which of the statements is INCORRECT?

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Explanations

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A. B. C. D.

Explanation

Since the U.S. Bond rank decreased when expressed in U.S. dollar terms, the U.S. dollar weakened over the time period observed. As the dollar weakens, a U.S. investor would earn higher returns on foreign investments because each unit of foreign currency buys more dollars. A foreign investor would also be able to earn higher returns in the U.S., as it would take less of a foreign currency to buy dollars.

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